08/04/2024 Insurance Innovation


Middle and low income customers have a great need for life insurance - but simply can't afford it every month. Cover Extender allows customers to miss premiums whenever they need to, without the fear of losing their family’s insurance cover.

Innovation presentation

More than 2 Million customers lose their insurance cover each year simply because they can't afford to pay EVERY premium. Traditional insurance product rules are far too inflexible to adequately meet the real needs of this market.

Cover Extender is an insurance innovation that allows customers to miss premiums whenever they need to, without the fear of losing their family’s insurance cover.

Rather than cancelling the policy after a missed premium, Cover Extender temporarily reduces the benefit payable in proportion to the premiums missed over the preceding 6 months. When premiums are paid again later, the cover percentage increases.

In this way, policies are retained by customers for longer. They pay more premiums over time, and more claims are paid too. Insurers benefit from greatly improved persistency and profitability.

Uniqueness of the project

Insurance carriers have tried many approaches to improve premium collection - tracking customers accounts every day, double debiting after a missed premium, and loyalty rewards for those that pay perfectly for 5 years. All of these attempts ignore the customers reality: low income customers don't miss premium because they want to - sometimes they simply don't have money to pay.

Cover Extender is unique, because its the first innovation that deals with the customer's reality, and allows them to skip premiums whenever they need to, without the fear of their policy being cancelled. Cover is reduced in proportion to the premiums missed, but increases again when premium payments are resumed.

By allowing customers to retain their insurance policy for longer, more claims are paid - greatly enhancing the value of the product to low income customers.

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